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Creditor banks take legal action against Ting Hsin subsidiary

Creditor banks take legal action against Ting Hsin subsidiary

Taipei, Jan. 6 (CNA) Several banks filed a motion with the Taipei District Court Tuesday for provisional attachments of assets and lands held by a subsidiary of the scandal-ridden Ting Hsin International Group after it defaulted on a loan. The move came after Ting Lu Development Co., Ting Hsin's real estate unit, failed to pay a balance of NT$6.5 billion (US$205 million) owed on a syndicated loan by the Dec. 31, 2014 dateline. The creditor banks, led by Mega International Commercial Bank, asked the court to investigate the assets of Ting Lu and the deposits and real estate belonging to its owner. According to the banks, a plot of land in New Taipei's Sanchong District was used by Ting Lu as collateral in the syndicate loans. They estimate the land could be auctioned in mid-2015 after completing all administrative procedures. The Ting Hsin group has been financially squeezed since it was embroiled in an edible oil scandal in October, in which several of its subsidiaries were found to be making their oils with ingredients not fit for human consumption. Outraged consumer groups led a boycott of Ting Hsin's products and interests and its other businesses were scrutinized, leading banks to tighten their loan terms to the group.
The conglomerate had hoped to pay off the amount due at the end of December with a new line of credit, but banks balked after the food safety scandal erupted. (By Tien Yu-pin and Lilian Wu)


Updated : 2021-09-19 12:04 GMT+08:00